Why Amazon’s stock is so expensive

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trading around $3,200, Amazon‘s (NASDAQ: AMZN) stock comes with a hefty price tag. Amazon shares are on an incredible rally, even if you zoom out and look at it from a longer-term perspective. 

Why are its shares so expensive? Let’s dig a little deeper and try to answer that question. You may find the conclusion a bit surprising. 

What’s causing the surge in Amazon’s stock price? 

Since the start of the pandemic, more and more people have been relying on Amazon to deliver what they want and need to their doorstep. In the first three quarters of the year, sales are up by 34.9% from the same period in 2019. Furthermore,…